JPMorgan Profit Hit by Bailout Repayment

JPMorgan Chase (JPM) plans to take a non-cash $1.1 billion charge this quarter related to its repayment of the government's $25 billion bailout.

The charge will be a "one-time, non-cash negative adjustment" of approximately $1.1 billion used in calculating JPMorgan Chase's earnings per share (or rather a reduction in net income applicable to common stockholders), according to a Securities and Exchange Commission filing on Friday.

As a result, JPMorgan Chase expects to reduce its quarterly diluted earnings per common share by 27 cents for the quarter ending June 30. Analysts, according to Thomson Reuters, expect the firm to post a quarterly profit of 37 cents a share this quarter.

JPMorgan Chase on Wednesday repaid in full the $25 billion preferred equity stake the government in October bought through the Troubled Asset Relief Program. It also notified the government of its intent to repurchase the 10-year warrants issued to the Treasury at the time of the capital injection.

Other companies that also repaid TARP money this week included Goldman Sachs (GS), Bank of New York Mellon (BK), American Express (AXP), Capital One (COF) and Northern Trust (NTRS), among others.

Shares of JPMorgan Chase rose 2.3% to $34.98 on Friday.